Arvin Capital Management LP Makes New $2.80 Million Investment in EchoStar Corporation $SATS

Arvin Capital Management LP acquired a new position in shares of EchoStar Corporation (NASDAQ:SATS) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 25,800 shares of the communications equipment provider’s stock, valued at approximately $2,804,000. EchoStar comprises about 0.5% of Arvin Capital Management LP’s holdings, making the stock its 28th biggest holding.

Other large investors have also recently added to or reduced their stakes in the company. Hollencrest Capital Management bought a new stake in EchoStar during the fourth quarter worth about $26,000. CoreCap Advisors LLC bought a new stake in EchoStar during the fourth quarter worth about $28,000. Rosenberg Matthew Hamilton acquired a new position in shares of EchoStar during the fourth quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of EchoStar during the third quarter worth approximately $38,000. Finally, Tucker Asset Management LLC acquired a new position in shares of EchoStar during the fourth quarter worth approximately $42,000. 33.62% of the stock is owned by institutional investors.

Key Stories Impacting EchoStar

Here are the key news stories impacting EchoStar this week:

• Positive Sentiment: EchoStar remains closely tied to enthusiasm around the SpaceX IPO, and that relationship helped drive a sharp run-up in the stock earlier in the week as traders speculated on the value of EchoStar’s SpaceX stake. All Eyes on SpaceX IPO Today
• Positive Sentiment: Analyst targets on SATS remain above the current share price, with recent estimates implying upside if the company can stabilize operations and reduce balance-sheet risk. SpaceX IPO Crowds Pre-Market Sentiment
• Neutral Sentiment: The SpaceX IPO is dominating market chatter and has increased trading interest in Space-related names, which has boosted volatility in EchoStar rather than changing the company’s fundamentals directly. Stock Movers Ahead of SpaceX Debut
• Negative Sentiment: EchoStar disclosed that its DISH DBS subsidiary missed about $183 million in interest payments due June 1, which is a default under the indentures unless cured during the grace period; that has renewed default and liquidity worries. EchoStar shares slide as missed interest payment rekindles default and liquidity concerns
• Negative Sentiment: After the recent surge, traders appear to be taking profits, and Friday’s weakness reflects a pullback from the SpaceX-linked rally combined with renewed concern about refinancing risk. Stock Market Today, June 12: EchoStar Falls as SpaceX-Linked Rally Meets DISH DBS Payment Risk

Insiders Place Their Bets

In related news, CEO Hamid Akhavan sold 52,586 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $121.00, for a total value of $6,362,906.00. Following the transaction, the chief executive officer directly owned 865,633 shares in the company, valued at $104,741,593. This represents a 5.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 55.90% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on SATS. New Street Research began coverage on shares of EchoStar in a research report on Wednesday, May 13th. They set a “buy” rating and a $161.00 target price on the stock. UBS Group upped their target price on shares of EchoStar from $125.00 to $127.00 and gave the stock a “neutral” rating in a research report on Tuesday, March 3rd. TD Cowen upped their target price on shares of EchoStar from $129.00 to $155.00 and gave the stock a “buy” rating in a research report on Monday, May 18th. Zacks Research lowered shares of EchoStar from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, March 10th. Finally, Wall Street Zen upgraded shares of EchoStar from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $137.14.

EchoStar Price Performance

Shares of SATS stock opened at $114.08 on Friday. EchoStar Corporation has a 1 year low of $16.73 and a 1 year high of $147.25. The firm’s 50 day moving average is $126.01 and its 200-day moving average is $114.51. The firm has a market capitalization of $33.06 billion, a price-to-earnings ratio of -2.28 and a beta of 0.94. The company has a current ratio of 0.30, a quick ratio of 0.27 and a debt-to-equity ratio of 3.17.

EchoStar (NASDAQ:SATS) last announced its quarterly earnings data on Saturday, May 9th. The communications equipment provider reported ($0.51) earnings per share for the quarter, missing the consensus estimate of ($0.48) by ($0.03). EchoStar had a negative net margin of 97.56% and a negative return on equity of 4.80%. The business had revenue of $3.67 billion during the quarter, compared to analyst estimates of $3.65 billion. During the same quarter in the prior year, the company earned ($0.71) earnings per share.

EchoStar Company Profile

EchoStar Corporation (NASDAQ: SATS) is a global provider of satellite communication solutions, offering a suite of broadband and video delivery services to consumer, enterprise and government customers. The company operates two principal business segments: Broadband and Video. Through its Broadband segment, EchoStar delivers high-speed satellite internet access, managed network services and ground infrastructure for residential, commercial and rural markets. Its Video segment provides satellite fleet operations, teleport facilities and capacity-leasing services to video distributors and content providers.

In the Broadband segment, EchoStar’s Hughes Network Systems division designs and manufactures satellite broadband equipment, including user terminals and gateways, and develops advanced network management technologies.